Thinking about selling your freelance services online to make extra cash? Or, do you need help with some of your tasks? Fiverr is a popular online marketplace for freelance services. Fiverr offers a great platform for freelancers to offer their services to customers worldwide. Meaning, you can make money from home, online, by offering your services on Fiverr. The numerous services offered on the site include writing, graphic design, translation, voice-over, data entry, computer programming, website design, virtual assistants, and video editing, amongst many more. In addition, if you need help, you can hire a freelancer to work for you. For example, bookkeeping, social media marketing, researching and so much more!
In this post we review how the platform works and provide pros and cons for freelancers selling on Fiverr and some pros and cons for those thinking of purchasing a service on the marketplace.
What is Fiverr?
Fiverr is a user-friendly online marketplace that continuously expands its global domain. It bridges the gap between businesses or people who need help and on-demand freelancers ready to serve their cause. In addition, freelancers are allowed to offer digitalized services in at least 300 diversified categories.
The Fiverr services start from $5 and may go to thousands of dollars. Each service offered by the seller is called a ‘gig.’
There has been a consistent increase in the number of people associated with freelancing worldwide. Fiverr has a colossal fan base and is one of the most prominent freelance marketplaces, encompassing millions of buyers and sellers.
Some Statistics About Fiverr
Here are some of the noteworthy statistics about the marketplace:
- Fiverr has approximately 3.4 million active buyers.
- There are around 830,000 sellers on the marketplace.
- Around $50 million transactions are conducted through it every month.
- Fiverr has more than 300 service categories.
- The platform offers its services in at least 160 countries.
- In 2020, their annual revenue was $189 million.
How Does Fiverr Work?
The working mechanism of Fiverr is much similar to other freelance platforms.
- Sellers, or freelancers, make an account and list their services and fees. Some freelancers may work part-time for extra cash or may freelance full-time.
- Buyers search Fiverr for freelancers, and when the buyer finds a freelancer they like, they purchase a gig. The buyer will then provide the requirements of the job.
- The freelancer may message the buyer if there are additional questions. When the freelancer sends the final product to the buyer, the buyer can request changes, if needed. When the buyer is satisfied with the gig, they mark it as complete.
- Reviews are important to the freelancer because it is a reflection of their work. Once the gig is finished, the buyer can rate the seller’s work in the form of a ‘review.’ The review starts from ‘1 Star’ and ends with the best rating being ‘5 stars’.
Of course, reviews play a pivotal role in defining if a freelancer is a successful seller or not. The more five-star reviews a freelancer has, the more likely they will be ranked higher and show up on the top of a buyer’s search, which tends to lead to more gigs.
Fiverr is the middleman. Fiverr charges the buyer for the gig. When satisfied, the buyer marks the gig complete. Fiverr holds that money until approximately 14 days. Then, they release the money to the freelancer.
How Does Fiverr Make Money?
At the time of the purchase, Fiverr charges the buyer approximately $2.25 extra. This small fee is in addition to the amount the freelancer (seller) charges. Fiverr also charges the freelancer (the seller of the services) 20% of the gig price for using the marketplace.
Levels for Seller on Fiverr
Each seller on Fiverr has a certain level that ranges from ‘No level’ to the ‘Top Rated Seller.’ This segregation helps buyers determine the experience of the freelancer. Levels are determined by the number of completed orders, total days spent on Fiverr, total earning through Fiverr, and if Fiverr had to issue any warnings to the seller.
When the seller joins Fiverr, they begin with no level. Promotion to a ‘Level One’ occurs after the freelancer spends 60 days on Fiverr, completes ten orders, and earns $400 without any warnings from the Fiverr team.
Sellers can continue to increase their levels by meeting specific criteria. Typically as the freelancers’ levels increase, their ranking improves, and they usually get more gigs.
What is Fiverr Pro?
Fiverr Pro sellers are exclusive sellers who are manually by the Fiverr team. Because of this verification process, the price range for Pro services is also higher than other non-pro GIGs.
Buying on Fiverr
Fiverr has made it extremely easy for people to purchase gigs and get their work done. When searching for a freelancer, the buyer has multiple filters to find the right freelancer for their needs.
Freelancers provide details about the gig. The gig description usually describes specifically what the freelancer will do, the completion timeframe, and the price.
Buyers can message freelances with any questions. Depending on the type of gig, some freelancers may recommend an initial contact before the buyer purchases. Once the buyer purchases the gig, the buyer must provide the freelancer with their specific requirements or information.
Depending on the type of gig, the freelancer may offer samples of their work, or a buyer can contact a freelance before purchasing and ask for work samples.
Pros of Buying on Fiverr
Fiverr is a great marketplace to buy services.
Pros for buyers purchasing services from Fiverr:
- The platform possesses a huge number of talented freelancers.
- The Fiverr team supports its buyers. If the work quality is not adequate, the buyer can ask the freelancer for revisions until they are satisfied with the work. The buyer can cancel orders or file a dispute if the need arises.
- Fiverr holds the funds from the seller until approximately 14 days after the buyer marks the gig as complete. This financial hold is to ensure the buyer is satisfied.
- There are more than 300 service categories available, and buyers can buy any service.
- Buyers can find sellers who can deliver quality work within their budget.
- The buyer has the authority to rate the result of the seller.
Cons of Buying on Fiverr
- You may not get what you expected. You may have to request changes or dispute an order.
- Your work may not be finished in the time expected. However, if the work is not sent to the buyer on time, it is considered a ‘late delivery.’ Late delivery is counted against the freelancer profile.
To minimize the risk of using any freelancer, be clear with your requirements and choose your freelancers carefully.
Selling on Fiverr
People freelance on Fiverr to make money. When selling through Fiverr, the seller needs to set up a profile and add gigs (considering their skills). Fiverr may require the completion of a test as a condition for publishing the seller’s gig. Testing is only necessary for some specified services, not for all services.
After publishing the gig, Fiverr will start showing the gig in search results. If the gig is purchased, the seller will see ‘Buyer Requests’ on their dashboard. Freelancers can respond to buyer requests and start the order after receiving the necessary information from the buyer.
The freelancer should deliver the gig within the specified time as indicated in their gig description. Otherwise, ‘Late Delivery’ can cause harm to the seller’s account.
After the order’s completion, the seller delivers it to the buyer. The buyer may ask for revisions. When the work meets the buyer’s requirements, the buyer marks the gig complete.
Pros of Selling on Fiverr
Here are some advantages associated with selling on the platform:
- Fiverr can be an ideal platform for beginners or for those that want to earn extra cash.
- The seller can set up multiple gigs based on different or the same services. As the seller’s level gets better, they can add more gigs.
- There is usually an option for ‘Gig Extras.’ For example, an increased price for faster delivery.
- The seller can send custom offers to buyers if the buyer wants services that vary from the gig description.
- Sellers that meet specific criteria may get the offer of ‘promoted Gigs’ from Fiverr. This can help the seller promote their gig and can help increase sales.
Cons of Selling on Fiverr
- Fiverr withholds funds for approximately 14 days.
- The platform can cancel an order at the request of buyers.
- The competition can be stiff. The platform has a significant number of freelancers.
- The ranking of gigs may go down due to negative reviews, high cancellation rates, or changing algorithms.
- Fiverr deducts 20% of seller earnings, including tips.
Fiverr is a great place to find a freelancer or sell your services and earn extra cash. It is a huge marketplace that connects freelancers and buyers from around the world. It is a great place to make some money online from home. In addition, if you need extra help with your business or other things that can be done online, it is a place to hire numerous types of freelancers.